EPA to give 1,039 Japanese products duty-free access in Bangladesh

11 Feb '26

2 min read

EPA to give 1,039 Japanese products duty-free access in Bangladesh

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Insights

Under the recently-signed Bangladesh-Japan Economic Partnership Agreement, the former will grant the latter duty-free access for 1,039 products, while the latter will provide duty-free entry for 7,379 products from the former.
The deal will initially cost Bangladesh around Tk 200 million in annual revenue per year, while creating opportunities for exports, services, investment and employment.

Under the Economic Partnership Agreement (EPA) signed between Bangladesh and Japan last week in Tokyo, the former will grant the latter duty-free access for 1,039 products, while the latter will provide duty-free entry for 7,379 products from the former.

Bangladesh's tariff line includes 7,458 items now.

The deal is expected to come into force immediately after Japan's new parliament approves it.

Many products, including cotton and yarn, already enter Japan at zero duty, while machinery face 1-per cent duty.

Commerce Adviser Sheikh Bashir Uddin and commerce secretary Mahbubur Rahman addressed journalists in Dhaka recently outlining the key features, benefits and challenges of the EPA.

The deal will initially cost Bangladesh around Tk 200 million in annual revenue per year, while creating opportunities for exports, services, investment and employment, but the immediate revenue loss is minimal, both explained.

A key feature of the deal is the single-stage transformation facility for Bangladesh's readymade garments (RMG). Bangladesh can import fabric, manufacture garments with only 30 per cent value addition, and export them duty-free to Japan.

Bashiruddin said this could significantly enhance the competitiveness of Bangladesh's RMG industry.

He said Bangladesh is not rushing implementation, as it already enjoys duty-free access under its least developed country status, extended until 2029, according to domestic media reports.

The agreement offers 18 years to build sectoral capacity, ultimately benefiting domestic industries and consumers in Bangladesh.

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